Egypt has put a number on how climate change could hit public finances

Good morning, friends, and happy long weekend. It’s been a busy week — and we have the full round-up below. But first, today’s issue may or may not have taken on an Odyssey theme entirely by accident: we have Christopher Nolan’s The Odyssey at the cinema, Margaret Atwood’s The Penelopiad on the shelf, a guide to water activities in Cairo for anyone whose own epic journey this weekend doesn’t extend beyond the city, and a café in Alexandria for those passing through on the way to Sahel. We also pay tribute to the late Hany Shenouda.

But first, your weekly recap…

🗞️ LAST WEEK IN 3 MINS-

FISCAL POLICY-

Egypt has, for the first time, put a number on how climate change could hit the state’s balance sheet. The country’s first-ever Fiscal Risk Statement on Climate Change for FY 2026/27, obtained by EnterpriseAM, quantifies how physical climate shocks and the global shift to a low-carbon economy could hit public finances — from the electricity grid to its biggest PPP-backed infrastructure projects.

Why it matters: The statement turns climate risk from an environmental talking point into a fiscal line item. It sits inside Egypt’s IMF-backed reform program — the Fund singled out the state’s guarantee stock as a fiscal risk in its 29 June statement — and it sets the template for how the government will budget for climate exposure as it shifts to program-based budgeting by FY 2027/28.

ECONOMY-

The CBE issued the first-ever 63-day Treasury notes, worth EGP 150 bn, on behalf of the Finance Ministry this week. The return on these short-term instruments floats with the CBE’s corridor rate rather than being fixed at auction.

REGULATION-

Individual persons’ ins. policies worth EGP 10 mn or more now carry a mandatory credit check on the applicant, under new risk-management standards from the Financial Regulatory Authority. The standards also require insurers to pull an applicant’s credit record when their income, occupation, premiums, or requested cover don’t add up, or where there’s doubt about the legitimacy of the application.

AND- An auditor who has worked with a company for at least five years by the time it lists can now keep auditing its books for up to two more fiscal years after the offering, per amendments from the Financial Regulatory Authority (FRA). By keeping the auditor who knows a company best through its listing, the FRA removes a friction point for firms weighing a float.

DEBT WATCH-

The Emerging Africa & Asia Infrastructure Fund committed a USD 30 mn senior secured corporate loan to Hassan Allam Utilities to help finance the Minya 1 GW solar and 660 MWh battery-storage system. Separately, the European Bank for Reconstruction and Development is weighing up to USD 170 mn in senior debt for the same plant, against a total project cost of USD 764 mn.

AUTOMOTIVE-

Imported cars are facing stretched-out customs registration and lower priority for FX, even before a new tariff takes effect. While importers of finished cars are facing these informal challenges, parts and local-content importers are being waved through. A formal tariff on fully-built cars is coming separately by end-August.

INVESTMENT-

Petrojet and Enppi secured a six-year route into Petroleum Development Oman’s (PDO) USD 6 bn+ project pipeline. The Egyptian consortium was selected as one of four international contractors and alliances eligible to compete for engineering, procurement, and construction work under a long-term framework with PDO.

TELECOMMUNICATIONS-

Telecom Egypt wants to keep its data center business in-house. The EGX-listed telco pulled the plug on its planned sale of a majority stake in its Regional Data Center Hub (RDH) to Helios Investment Partners, the UK-based, Africa-focused PE firm. Telecom Egypt cited unmet conditions in the term sheet but gave no further details.

The EnterpriseAM Egypt Forum is back — and this year, we’re giving the full day to the one question on every business leader’s mind: What does AI actually mean for your company, your people, and your own job?

Leaders in New York, London, Abu Dhabi, and Singapore are asking the same things, and nobody has built a playbook that works yet. We’re all figuring it out in real time — and for Egypt, the stakes are unusually high.

Egypt could leapfrog a generation on the back of this technology — or watch AI hollow out the industries and jobs we can’t afford to lose. The leaders who get literate early will be the ones who get to decide which road we take.

Every session on stage answers one question: “So, what do I actually do about it?”

Join us on 5 October in Cairo. Seats are limited, and attendance is by invitation only.

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🌍 AROUND THE WORLD IN SEVEN DAYS-

This week’s headlines were dominated by the most relentless stretch of the US-Iran war yet — 11 consecutive nights of US strikes, US soldiers killed, and oil prices going haywire — alongside Russia’s biggest missile attack on Kyiv in months, and a new UK prime minister. Here’s the rundown.

The war escalated sharply after an Iranian strike on Jordan killed two US service members — a third was confirmed dead by Monday — prompting Washington to carry out its eighth, ninth, tenth, and eleventh consecutive nights of strikes targeting Iran’s coastal surveillance, air defence, and missile infrastructure. Tehran retaliated with waves of drones and missiles at US bases across Bahrain, Kuwait, and Jordan, and formally announced it would no longer adhere to the interim truce. Oil briefly jumped above USD 90/bbl for the first time in a month before retreating after Iran’s foreign ministry signaled that negotiations could return to the table. On Tuesday, US Defense Secretary Pete Hegseth told the Senate Appropriations Committee the war has cost USD 37.5 bn so far — the number in itself an undercount.

On a separate regional front, Israel pulled back its forces from southern Lebanon as a US-brokered truce took effect — premised on Beirut exerting military authority over Iran-backed Hezbollah. Lebanese President Joseph Aoun met Donald Trump, the first summit between the two nations’ leaders in roughly 20 years.

MEANWHILE- Russia launched one of its largest ballistic missile attacks on Kyiv since the full-scale invasion — more than 40 missiles and 125 drones targeting the Ukrainian capital, killing at least one and wounding 14. Ukrainian defenses intercepted 108 drones and shot down 18 missiles.

IN LONDON- Andy Burnham was formally appointed Britain’s seventh prime minister in 10 years, succeeding Labour predecessor Keir Starmer. The former Manchester mayor pledged to restore stability and deliver a long-term economic plan later this year.

IN THE BUSINESS PRESS- Trump’s trade war found a new front: Washington is set to impose a 50% tariff on a wide range of Canadian goods — taking effect in 30 days, exempting energy and critical minerals. TSMC announced a further USD 100 bn investment in its Arizona facilities on surging AI chip demand after reporting record 2Q results. And a US federal court approved a USD 1.5 bn copyright settlement between Anthropic and a class of authors over Claude’s training data — the largest payout in US copyright history.

ALSO- Spain captured the 2026 World Cup title with a 1-0 extra-time victory over Argentina in New Jersey, claiming its second-ever title. Andrew and Tristan Tate were arrested in Miami by US Marshals on charges of rape and human trafficking as the UK’s Crown Prosecution Service pursues extradition.

AND- France banned children under 15 from using social media, becoming the first EU country to do so. Both chambers of parliament voted in favor of the measure.

☀️ THE WEATHER THIS WEEKEND-

It’s a brutal start to the long weekend in Cairo. Today, the capital peaks at 42°C, with a low of 26°C overnight — Alexandria stays cooler at 34°C, with a low of 26°C. Tomorrow brings somewhat of a reprieve to Cairo, with a high of 37°C and a low of 25°C, compared to a high of 32°C and a low of 22°C up north, according to our favorite weather app. Expect more of the same on Saturday both in the capital and throughout the coast.

🎤 HAPPENING THIS WEEKEND-

Standup comedian Ahmed Hassan gets his first-ever comedy special at Teatro 90, presenting The Special 1 tonight at 9:30pm. The show marks his biggest and most personal one to date — expect brand new material and the audience interactions he’s become known for. Tickets are available on TicketsMarché.

Marwan Pablo and Lege-Cy are taking their unmistakable flow to the North Coast. The rap icons join forces at Porto Golf in Alamein tonight at 9pm to kick off the Porto Golf Summer Festival. Expect an evening of chart-topping hits, booming beats, and enough crowd energy to rival the summer heat. Tickets are available on TicketsMarché.

Cairo Opera House’s Summer Festival for Music and Singing is back, and kicking it off is a live performance by Ali El Haggar at Alexandria Opera House’s Sayed Darwish Theater tonight at 8:30pm. Experience the great singer’s timeless hits and unmistakable vocals live. Tickets are available on Tazkarti.

This Sahel season, it’s all about sunset experiences — and Ruby is bringing another one to Amarai Beach tomorrow to ask the age-old question: Leih Beydary Keda? The concert kicks off at 5pm, and you can grab your tickets — with beach access included — on TicketsMarché.

Looking for a good laugh while in Sahel this weekend? The Goats are landing at The Plot at Playa Strip Mall tomorrow. The stand-up comedians bring their sharp humor, signature crowd work, and witty “Sahel tayeb” vs “Sahel sherir” jokes. The show kicks off at 11pm, with tickets available on TicketsMarché.

🎤 HAPPENING NEXT WEEKEND-

Sharmoofers are joining this summer’s Sahel concert lineup, performing for this year’s Localine, taking place at Masyaf in Ras El Hekma on Friday, 31 July. The event brings together a mix of local brands, shopping, and live entertainment. The concert kicks off at 8pm — tickets are available on TicketsMarché.

The Tiatro Romano festival continues on Friday, 31 July, bringing performances from Reda El Bahrawy, Rahma Mohsen, and Ahmed Sheba at The Roman Theater in Al Alamein’s Marina 2. Expect vocal-heavy live performances and sing-along anthems. The concert kicks off at 10pm — tickets are available on TicketsMarché.